Awesome Oscillator and Its Smoothed Signal Line

Summary

This short indicator note describes an Awesome Oscillator implementation for ProRealTime, where the indicator is not included by default. It defines the oscillator as the difference between five-period and 34-period simple averages of median price. It also defines a signal line by applying a five-period average to that same difference. The supplied indicator output includes both the signal line and oscillator, which can be used together for chart analysis.

The page provides the formulas but does not explain a trading rule, such as how to interpret crossings or histogram changes, and it offers no market, timeframe, backtest, or performance evidence. The indicator therefore serves as a technical-analysis building block rather than a complete strategy. Its usefulness depends on how a trader interprets and tests the signals in a specific instrument and context.

Key ideas

• The Awesome Oscillator is calculated as the difference between five-period and 34-period averages of median price.
• The note defines a signal line by smoothing the oscillator with a five-period average.
• The implementation outputs both the oscillator and its signal line for charting.
• No entry rules, exit rules, or performance evidence are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.